ANALYSIS:
There are a variety of options on the menu of parking services with valet being the highest level of service which calls for a premium price point.
Valet parking service is a longstanding and valuable amenity available to the business community and particularly the hospitality industry. In fact, valet service was a valuable tool in the resurgence of South Beach in the 1990s.
However, over time, the valet parking paradigm has evolved. The proliferation of enhanced technologies in the transportation and parking arenas; generational changes in mobility behavior; and the development of many properties that formerly served as vehicle storage locations have all contributed to more normalized use of valet parking service.
Best Practices
The City of Miami Beach was the first jurisdiction in South Florida to codify regulations of right-of-way uses for valet parking operations. These regulations addressed a variety of issues, including traffic congestion, illegal use of public parking spaces, and established a code of conduct. Over the last two decades, these regulations have been amended with the most recent amendment taking place in October 2015.
Further research of valet parking business models and regulations in other jurisdictions, including the City of Miami and City of Coral Gables, revealed the following:
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City of Miami regulations and enforcement fine schedules are consistent with Miami Beach’s regulations (and enforcement fine schedule) that were in place prior to 2015.
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City of Coral Gables regulations are consistent with Miami Beach’s regulations that were in place prior to 2015, with a fine schedule commencing at $100 and permit suspensions or terminations for subsequent violations within a 12 month period.
The amendments to the City Code that were approved by the City Commission in 2015 have significantly improved valet parking operations. The following is a summary of the amendments to the City Code and their related benefits:
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Traffic Operations Analysis approved by a P.E. (professional engineer).
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Set maximum distance between ramp and vehicle storage location to decrease travel time which is a contributor to traffic congestion.
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Approval of staffing levels/schedule of valet parking service operational hours for the establishment, including valet runners; supervisors, and managers.
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May require an off-duty police officer, as determined by the Chief of Police, for traffic control and/or mitigate traffic congestion.
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Determine whether the proposed valet parking service will have a beneficial effect on vehicular and pedestrian safety.
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Standardized valet parking street furniture; including signs, stands, and key boxes; establishes consistency in aesthetics.
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Storage of vehicles on private parking facilities which are properly permitted and have sufficient vehicle storage capacity, as determined by the Planning Director.
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Strengthening of regulations.
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In no instance shall there be more than one (1) valet ramp per block side and no more than four (4) parking spaces per block side is permitted.
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Ramping shall only take place in the space(s) provided for ramping.
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Double parking or obstruction of a traffic lane is strictly prohibited.
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All design standards for all street furniture including signs, stands, and key boxes shall be determined by the Planning Director. At a minimum, the following shall be applicable:
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Be constructed of durable material that will withstand the year-round impact of the weather and must be maintained in good taste and in good condition at all times.
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Be sufficiently weighted and constructed to withstand strong winds. Not exceed twenty four (24) inches in width and forty eight (48) inches in height (including base, holder, frames, etc.) measured from the sidewalk surface.
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Be freestanding and may not be affixed to any street fixtures including, but not limited to trees, meters, lampposts, grates, bike racks, decorative benches, news boxes, etc. in any manner. Signs shall not be electrified in any way, be lighted in any way, or have any moving components.
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Display the following information: name of valet parking operator, address and 24 hour contact number; valet parking fee schedule; and hours of operation.
Business Models
A review of other business models included the sole-operator approach in the City of Miami’s Design District. This business model is privately owned and operated. Transitioning this business model to the public sector has the following challenges.
Vehicle storage is a critical resource. Many, if not most, vehicle storage locations in the city have leaseholds that would likely require some level of buyout. Most of the current valet operators are small local operators. It is unlikely existing operators would have the financial wherewithal to acquire these leaseholds.
National parking operators are more likely to have the financial wherewithal to do so. These local operators would be hard pressed to compete with national operators likely resulting in their phase out over time.
In addition, national operators may increase valet parking user fees as they would likely encounter some increased costs for those leasehold buyouts for vehicle storage. While the price point for valet service should have a premium, increased fixed costs as well as the aforementioned factors adversely influencing demand may not result in a viable business model.
Also, please note that on October 31, 2017, the Mayor and City Commission approved an ordinance, on second reading/public hearing, amending the fine schedule for valet parking violations. The amendment reduced the fine for the first violation from $1,000 to $500 and second violation from $2,000 to $1,000. This was done with the intent to provide valet operators with a reduced fine schedule at the onset allowing for behavior modification. However, the remainder of the fine schedule remained intact to address habitual offenders and related abuses.
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